Our cars are devalued significantly.

[Kamuelaflyer]

Anybody who paid ADM on their MME is especially screwed.

Only if you think of cars as a financial investment.

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[Mach1E]

Only if you think of cars as a financial investment.

No, only if you think of cars as an expense.

And a reduced resale value increases that expense.

While it’s not something to freak out about, it is disheartening realizing your cost of ownership increased significantly.

Hurts even more when a new model comes out (Like the Macan EV turbo at $118k equipped the way I would like it) and you realize how much it would cost to upgrade.

What you originally paid for the car? Sunk cost.

What it’s worth now is actually the only number that matters.

 

[RickMachE]

The only thing unique to EVs, if you paid MSRP or less, is the higher first year drop in value than with gas vehicles. In reality, if you're not selling, it's totally meaningless. Some dumped out quick, and took a hit. Just read a guy selling his Lightning because he got transferred and lost his free work charging... So he's now going to take a $20,000 hit probably. Not the brightest way to approach things.

A few years from now, we'll have a different perspective.

I also think that the increased impact of technology in all vehicles is going to make it a faster curve, regardless of fuel type.

As @Kamuelaflyer said, vehicles are an investment, they are a mode of transportation that you buy, and then when you sell they are worth a lot less. If I added up what I paid for vehicles over the years, minus what they sold for...

Historically, most vehicles cost me $2k or less per year over their life, not counting insurance. Some maybe 25% of that.

 

[Snakebitten]

3 of the last 4 vehicles that I traded in were purchased by family/friends for $500 over the trade in value. (I think the industry calls it an In&Out?)

It doesn't negate the depreciation that I financially experience, but it sure as heck benefits my friends/family. Something about that kills the sting. Completely.

I even have siblings, kids, grandkids that take dibs on some of the vehicles I fetch. Lol

Then there's the vehicles that I just can't let go of even though I don't have enough miles to drive to give it its fair share. They get their spot in the barn and given opportunity to guilt me when I walk by. ?

I'd GIVE those to a loved one that truly desires it, before I'd sell it to a stranger for some silly Bluebook value that doesn't understand soul.

 

[mkhuffman]

The only thing unique to EVs, if you paid MSRP or less, is the higher first year drop in value than with gas vehicles. In reality, if you're not selling, it's totally meaningless. Some dumped out quick, and took a hit. Just read a guy selling his Lightning because he got transferred and lost his free work charging... So he's now going to take a $20,000 hit probably. Not the brightest way to approach things.

A few years from now, we'll have a different perspective.

I also think that the increased impact of technology in all vehicles is going to make it a faster curve, regardless of fuel type.

As @Kamuelaflyer said, vehicles are an investment, they are a mode of transportation that you buy, and then when you sell they are worth a lot less. If I added up what I paid for vehicles over the years, minus what they sold for...

Historically, most vehicles cost me $2k or less per year over their life, not counting insurance. Some maybe 25% of that.

Rick, don't forget the $7500 immediate used car depreciation caused by our almighty Federal Government. ?

 

[nvabill]

Post to a local GMC dealer that is selling a 2022 GT gray on gray similar to mine with only 16,000 miles for 38,000. What a depreciation so sad.

Honestly I’m not sure what you expect for a two year old car.

 

[Jerrytball]

3 of the last 4 vehicles that I traded in were purchased by family/friends for $500 over the trade in value. (I think the industry calls it an In&Out?)

It doesn't negate the depreciation that I financially experience, but it sure as heck benefits my friends/family. Something about that kills the sting. Completely.

I even have siblings, kids, grandkids that take dibs on some of the vehicles I fetch. Lol

Then there's the vehicles that I just can't let go of even though I don't have enough miles to drive to give it its fair share. They get their spot in the barn and given opportunity to guilt me when I walk by. ?

I'd GIVE those to a loved one that truly desires it, before I'd sell it to a stranger for some silly Bluebook value that doesn't understand soul.

I think if I would’ve had my crystal ball back in 2006 I think that’s when the Ford GT came out, and had that spare $130000.00 Should’ve bought that and held onto it, because what they’re selling for over 1 million now?

 

[leeman]

Sadly I have to as well I guess it's been all these updates that have been driving me nuts and then the app update that drove me nuts and then I went to the dealer to get another TSB done because I was having problems with the pre-collision alert issue with the Cox cable the first thing out of the service advisor mouth was did you recently wax your car that might be why you're getting that and I'm like oh here we go one of those guys says hey turn your radio up because there's rattles bananas. Yeah ultimately I'm trying to make the car reliable and safe for my wife because she drives it to work every day but when I have to go and pick her up when she's feels unsafe in the car because of all these errors and things it takes several hours out of my day and it happened so many ti but that's another story.

 

[Sikkun]

Drive a car long enough and it’ll be worth effectively $0.

 

[Triggerhappy007]

Actually, his zip code is in his location and he’s right!

https://www.cargurus.com/Cars/inven...2990&zip=60543#listing=381421334/NONE/DEFAULT

That's not indicative of the market since that dealer sells a lot of lemons and repaired cars.

 

[Mach1E]

That's not indicative of the market since that dealer sells a lot of lemons and repaired cars.

It’s indicative of the market near him and he was right.

Doesn’t mean you can find a car at that price where you live though. Either way, even if it’s a buyback it’s cheap.

 

[devmach-e]

For me the tax credit means nothing they could’ve gave me $100,000 tax credit and it wouldn’t help me one bit. I’m one of those in the situation that has such an income I break even at the end of the year so I owe nothing & They owe me nothing, so the tax credit,

Owing nothing or getting back nothing on tax day has zero to do with being able to claim the credit. What does matter is what your tax liability is. I.e the government thinks that for what you earned in taxable income, you should pay X amount. That X amount might be covered by the paycheck withholdings, deductions from a brokerage account when you sell investments, or quarterly tax payments you make.

Now, you might be one of those lucky people's whose income is not subject to income tax, in which case, yes, you might've not benefited from the tax credit. But it doesn't hurt to go back and look at your income tax return, specifically line 24. If that value is more than $1, you might've been able to claim that tax credit and get a refund. And if it is within 3 years of the filing deadline for that tax year, you could file an amended return and get the tax refund.

https://www.schwab.com/learn/story/...24: The total tax,your income during the year.

 

[Jerrytball]

Owing nothing or getting back nothing on tax day has zero to do with being able to claim the credit. What does matter is what your tax liability is. I.e the government thinks that for what you earned in taxable income, you should pay X amount. That X amount might be covered by the paycheck withholdings, deductions from a brokerage account when you sell investments, or quarterly tax payments you make.

Now, you might be one of those lucky people's whose income is not subject to income tax, in which case, yes, you might've not benefited from the tax credit. But it doesn't hurt to go back and look at your income tax return, specifically line 24. If that value is more than $1, you might've been able to claim that tax credit and get a refund. And if it is within 3 years of the filing deadline for that tax year, you could file an amended return and get the tax refund.

https://www.schwab.com/learn/story/...24: The total tax,your income during the year.

I’ll go look at that line but yes, I am one of the lucky ones. Like I said bring in all your stuff next year but I’m thinking you probably won’t have to file Jerry there’s Wall Street and I’m more like New London Connecticut banks Street lol

 

[Jerrytball]

Owing nothing or getting back nothing on tax day has zero to do with being able to claim the credit. What does matter is what your tax liability is. I.e the government thinks that for what you earned in taxable income, you should pay X amount. That X amount might be covered by the paycheck withholdings, deductions from a brokerage account when you sell investments, or quarterly tax payments you make.

Now, you might be one of those lucky people's whose income is not subject to income tax, in which case, yes, you might've not benefited from the tax credit. But it doesn't hurt to go back and look at your income tax return, specifically line 24. If that value is more than $1, you might've been able to claim that tax credit and get a refund. And if it is within 3 years of the filing deadline for that tax year, you could file an amended return and get the tax refund.

https://www.schwab.com/learn/story/...24: The total tax,your income during the year.

Line 24 is zero?

 

[devmach-e]

Line 24 is zero?

Well, there you go. You are one of the lucky few people who don't appear to have taxable income. Congrats.

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